Humber/Ontario Real Estate Course 4 Exam Practice

When multiple representation occurs, what is a correct disclosure requirement under REBBA?

1. Two disclosures, one before signing the agreement and another before presenting offers.

2. Only one disclosure at the property listing point is needed.

3. Written consent from both buyer and seller is unnecessary with appropriate disclosures.

4. Disclosures should be made to clients but not to customers.

5. Disclosure is only optional under specific cases.

6. Disclosure requirements vary based on property type.

The correct answer is: Two disclosures, one before signing the agreement and another before presenting offers.

When multiple representation occurs, the requirement is indeed to provide two disclosures: one prior to signing the agreement and another just before presenting offers. This process ensures that all parties involved are fully informed of the agent's role and potential conflicts of interest. The necessity for two separate disclosures underscores the importance of transparency and informed consent in real estate transactions, especially when the same agent represents both the buyer and the seller. This requirement aligns with the Real Estate and Business Brokers Act (REBBA) guidelines, which aim to protect clients’ interests in potentially conflicting situations. By making these disclosures, agents maintain professionalism and help foster trust in the relationship with their clients. In contrast, the other options do not accurately reflect the legal obligations under REBBA. For example, only one disclosure at the property listing stage does not suffice in scenarios of multiple representation, as it does not cover the critical moment of offer presentation. Similarly, the notion that written consent is unnecessary contradicts the principle of informed consent that is vital in real estate dealings. Disclosures being made solely to clients instead of customers oversimplifies the interaction; both parties merit awareness of the agent's role. Optional disclosures only in specific cases undermine the structured approach needed to ensure compliance. Lastly, the variability of disclosure requirements